HAMBURG - Prices in Europe's animal feed meal market fell sharply on Wednesday, pressured by a large overnight fall in Chicago soymeal futures triggered by expectations of ample soybean supplies in coming months.
Most Chicago soymeal futures <0#SM:> closed down their $20 per ton daily trading limit on Tuesday as forecasts for crop-friendly weather in the U.S. Midwest generated expectations of a good U.S. soybean harvest.
"Chicago soymeal continued to fall on Wednesday after the latest U.S. crop progress report showed a decent state of U.S. soybean crops following a lot of worry about dry U.S. weather," one European trader said.
"It looks like a pretty good U.S. soybean crop is on the way. But buyers were hoping for further price falls and were not active today." No major trading was reported in Europe.
In Europe, July Argentine high protein soymeal was offered for sale down $26 a metric ton at $449 CIF Rotterdam and Brazilian high protein soymeal for July delivery was quoted down $17 at $475 a metric ton CIF Rotterdam.
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EU-produced high protein soymeal for July delivery was down $19 at $455 a metric ton and EU rapeseed meal for July delivery was offered down 11 euros at 203 euros ($224) a metric ton FOB Lower Rhine.
July palm kernel meal was offered down between 8 to 11 euros a metric ton FOB Rotterdam depending on delivery position after a multinational trading house dropped its prices, but traders said sellers were unwilling to follow so prices were regarded as somewhat nominal.
"Overall demand for feed is still pretty slack with European livestock farming depressed and the EU dairy sector in a total crisis," another trader said. "Feed producers are not in a hurry to buy."
